Thursday, April 5, 2012
Russia: 35.1 billion U.S. capital outflow in first quarter
Not only are companies shipping out funds but Russians are buying up euros and dollars. The outflow this year compare with a 19.8 billion (U.S.) outflow during the same period last year.
Ordinary Russians also spent 54 per cent more on foreign currency this year compared to last. The number of Russians purchasing foreign funds increased from 4.4 per cent to 5.5 per cent.
The political situation and the declining value of the euro may both have played a part in the increased outflow. Outflows defied predictions. The Central Bank of Russia predicted that March outflows would be lower than in February but they were several billion higher in actuality.
Some experts think that the outflows will continue high but others predict the opposite due to steady growth in the Russian economy and the high cost of funding in roubles. For more see this article.